First rental property help!

Tampa, Florida
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First rental property help!

Sean Thoele
Member since 2025 · 6 posts · 16 votes

I am looking at purchasing my first rental property. After everything is said and done I would be potentially cash flowing $100-$150 per month. I have $40k to put down and this is a condo in the Jacksonville area. Is 100-150 a good cash flow amount for my first property? Or am I living on the edge? Any help would be appreciated. Thank you 

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
2mo

@Sean Thoele The answer is it depends. 

Is that the best use of your capital right now, in your life, at your age? Does the expected COC get your excited? Are you tapping into a 6-month emergency fund to buy the condo? Any value add opportunity? Do you have $5k cash set aside for emergencies and maintenance issues once it's rented?

The answers to those questions are important. They steer the "decision tree" and tell you if REI is a smart choice right now. When I started out it took me 6-12 months do research, read, run the numbers, and then buy my first house.

Dropping $40k into a condo and making $150 per month in CF after PITI, capex, maintenance, and vacancy? I wouldn't buy it. Condos usually appreciate slower than SFH, and Florida has seen some price swings lately. I'd walk more properties and search for a better deal.

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    2mo

    @Sean Thoele The answer is it depends. 

    Is that the best use of your capital right now, in your life, at your age? Does the expected COC get your excited? Are you tapping into a 6-month emergency fund to buy the condo? Any value add opportunity? Do you have $5k cash set aside for emergencies and maintenance issues once it's rented?

    The answers to those questions are important. They steer the "decision tree" and tell you if REI is a smart choice right now. When I started out it took me 6-12 months do research, read, run the numbers, and then buy my first house.

    Dropping $40k into a condo and making $150 per month in CF after PITI, capex, maintenance, and vacancy? I wouldn't buy it. Condos usually appreciate slower than SFH, and Florida has seen some price swings lately. I'd walk more properties and search for a better deal.

    1Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    2mo

    I would not go into a rental, especially condo in FL with that small amount of monthly net. Your outlay will mostly be your time and liability that far outreaches the $40,000 you have put down.

    Check out @Andrew Stefffans here. He is in Tampa and may be a good resource. 

    0Reply
  • Mitch Messer
    Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
    2mo
    Quote from @Sean Thoele:

    I am looking at purchasing my first rental property. After everything is said and done I would be potentially cash flowing $100-$150 per month. I have $40k to put down and this is a condo in the Jacksonville area. Is 100-150 a good cash flow amount for my first property? Or am I living on the edge? Any help would be appreciated. Thank you 

    Hey @Sean Thoele, welcome to BiggerPockets and congratulations as you venture out in pursuit of your first deal!

    Yes, monthly cash flow of $150 puts you squarely in the Danger Zone!

    You're just one bad association board meeting away from a condo fee increase that eats all your profit and leaves you in negative territory each month.

    But I'm not active in Tampa, and I don't know the situation on the ground there...

    So here's a quick hack to determine if you're got a great deal or not: See if anyone else local wants it!

    I know wholesaling takes a lot of heat on this platform, but if you were to place this deal in front of 10 serious and experienced investors in your market, would any of them take it?

    If no one wants this, then you don't have a deal worth doing.

    But if folks start fighting to take it on, then you've got a winner. (And, you might even consider letting it go, for the right price!)

    0Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
    2mo
    Quote from @Sean Thoele:

    I am looking at purchasing my first rental property. After everything is said and done I would be potentially cash flowing $100-$150 per month. I have $40k to put down and this is a condo in the Jacksonville area. Is 100-150 a good cash flow amount for my first property? Or am I living on the edge? Any help would be appreciated. Thank you 

    At $150/mo, you're making $1,800/yr. Your cash-on-cash return is only 4.5% (and drops to 3% if you only clear $100/mo). At that rate, it'll take you 22 to 33 years just to get your $40k capital back. Everyone's goals and pockets are different, but personally, I would want a much higher and quicker return for tying up that much cash.
    1Reply
  • Gabriel Reyes
    Member since 2024 · 22 posts · 12 votes
    2mo

    Hey Sean, one data point specific to Jacksonville condos: HOA fees there average around $300-500/month (per LotWize and Pursuit Real Estate's 2026 Jacksonville market reports), and Florida condos have seen a wave of fee increases and special assessments since post-Surfside reserve funding laws took effect — associations that used to keep fees artificially low are now required to fully fund reserves. That's a real variable sitting inside a $100-150 cash flow margin, worth having visibility into either way.

    1Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 685 votes
    2mo

    Congrats on looking at your first rental!

    Personally, I wouldn't make the decision based on the $100–$150/month cash flow alone. I'd ask what happens if the HOA goes up, property taxes increase, insurance jumps, or you have a vacancy or major repair. A small change in any of those could wipe out your cash flow.

    After being in this business for about 25 years, owning around 40 rentals myself, and managing more than 500 properties, one thing I've learned is that the deals that keep you up at night are usually the ones with the smallest margins. I always stress-test a property before buying it. What if rent drops a little? What if you have a month of vacancy? What if you need a new AC or roof sooner than expected? If the deal still works after running through those "what if" scenarios, then you probably have something worth buying. I'd rather buy one deal that gives me room to breathe than rush into the first one. There will always be another opportunity.

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  • Christian Grosskopf
    Investor · Louisville, KY · Member since 2017 · 92 posts · 38 votes
    2mo

    $150/month is tight, but like most responses on here, it depends. Is there any room for negotiation to bring down the asking price for the condo? Changing just one variable like that can drastically improve your cash flow and CoC return.

    1Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    2mo

    Hey Sean,

    I'd be careful looking at the cash flow in isolation. The bigger question is whether that $100-$150 is after you've accounted for everything.

    Have you included maintenance, vacancies, HOA dues, insurance, property taxes, future capital expenditures, and any special assessments? With condos especially, I'd spend extra time reviewing the HOA's financials and reserve study because one unexpected assessment can wipe out a year's worth of cash flow.

    That said, I also wouldn't automatically pass on a deal just because the cash flow isn't huge. My first investment property wasn't a home run on paper. I focused on buying a property with solid fundamentals that I could afford and hold for the long term. Sometimes getting your first deal done and learning the process is worth more than squeezing out an extra $100 a month.

    Just make sure you're not relying on perfect assumptions. Give yourself a margin for the unexpected.

    Best of luck with your first purchase! Feel free to DM me if you ever want to ask any more questions.

    1Reply
  • Kobe Carr
    Rental Property Investor · Member since 2024 · 27 posts · 8 votes
    2mo

    $100–150/month cash flow with $40k down is pretty low.

    You’re basically working for $1.25 an hour after all the headaches that come with being a landlord.

    I’d strongly recommend running the deal through better analysis before you pull the trigger. $100/month is razor thin — one repair or vacancy and you’re in the negative.

    What’s your purchase price and rent amount?

    1Reply
  • Amber Stout
    Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes
    2mo

    Personally, I wouldn't buy a Florida condo for $100–150/month in projected cash flow for a few reasons: 

    HOA dues and insurance costs have been increasing and special assessments are still a very real risk.

    Condos have become more challenging to finance which can reduce your future buyer pool when it's time to sell in the future. 

    At $100–150/month, you don't have much room for vacancies, maintenance, or unexpected expenses before you're in the red.

    If this were me, I'd either negotiate the purchase price further or keep looking for a deal with stronger cash flow and underwrite very conservative. 

    1Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Sean Thoele:

    I am looking at purchasing my first rental property. After everything is said and done I would be potentially cash flowing $100-$150 per month. I have $40k to put down and this is a condo in the Jacksonville area. Is 100-150 a good cash flow amount for my first property? Or am I living on the edge? Any help would be appreciated. Thank you 

    @Sean Thoele
    Congrats on getting to the point of evaluating your first rental. I'd look beyond the projected monthly cash flow and stress-test the numbers with realistic reserves for vacancies, maintenance, HOA increases, insurance, and future capital expenses. If the deal still works after those adjustments, you'll probably feel much more confident moving forward. Best of luck!

    786-656-0387
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  • Eric Power
    Member since 2026 · 11 posts · 3 votes
    2mo

    Living on the edge. Unless this is purely an equity play and you just want to offset the cost and build equity over the years until you exit. But this isn't a wealth generator. It's preservation at best.

    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    $100 to $150 a month is thin on paper, but the tax side changes that picture more than people expect on a first property. Depreciation on the building alone will likely produce a paper loss even while you're cash flow positive, since depreciation isn't a real cash outlay, so your actual after tax position is usually better than the bare cash flow number suggests. Worth having a cost segregation study done once you close, on a condo there's less to break out than a single family with land improvements, but items like flooring, appliances, and fixtures can still be accelerated rather than sitting on the standard 27.5 year schedule.

    One thing to watch on condos specifically, HOA dues are fully deductible as a rental expense, but any special assessments the HOA levies for capital repairs (roof, structural work, common area upgrades) typically get capitalized rather than deducted immediately, so factor that into your cushion since condo HOAs are more prone to special assessments than a standalone single family home.

    On the cash flow number itself, that's really more of an underwriting and reserves question than a tax one, so I'd run your vacancy and capex assumptions past other investors here who know the Jacksonville condo market specifically. But from the tax side, thin cash flow on paper doesn't necessarily mean thin real return once depreciation is factored in.

    Happy to connect!

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  • Michael BraddockBusiness Member
    Realtor · Jacksonville, FL · Member since 2021 · 6 posts · 6 votes
    2mo

    Hi Sean, I'm an agent in Jacksonville who works exclusively with investors, and I'm an investor myself. Most investors tend to stay away from condos because of HOA rules and fees. However, condos can be very easy and straightforward rentals to own and manage (we also manage nearly 600 units here).

    Make sure you're factoring in the actual property taxes once it's operating as a rental, an accurate insurance quote, vacancy loss, maintenance expenses, and property management costs if you're planning to go that route.

    I would also estimate rent on the lower end of the potential range to stay conservative. If you're still cash flowing in year one after accounting for all of that, I think it's a go.

    904-580-0330
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  • Eric Power
    Member since 2026 · 11 posts · 3 votes
    2mo

    @Ashish Acharya Ashish is highlighting a very real and sophisticated point to consider. If you know your investment goals, then you should have enough information to decide if you want to continue investigating this or not. If this more of a wealth preservation play, then it's worth further exploration. IMO.

    0Reply
  • Megan Mulligan
    Member since 2026 · 4 posts · 0 votes
    2mo

    Welcome, Sean! One thing worth thinking through: Tampa to Jacksonville is about a 3-hour drive, so if anything comes up in the unit, you won't be able to just swing by. The building/HOA will likely handle major stuff like the roof, but anything inside the unit — especially the AC, which runs nearly nonstop in FL — is on you.

    Are you planning to self-manage, or will you have a property manager or maintenance person handling things like filter changes? On tight margins like $100-150/month, one missed filter leading to a compressor issue could wipe out a year of cash flow.

    Also worth stress-testing: HOA special assessments. Even here in Tampa, we're seeing $20-30k special assessments hit condo owners out of nowhere. At $100-150/month cash flow, that's roughly 12-20 years of profit in one hit — plus there's the time value of money on your $40k down payment to factor in while you wait to break even. Might be worth finding out the last time major maintenance was done or special assessments issued - and take the weather into account. Jacksonville gets impacted by cyclones more than Tampa so you're more likely to see weather damage (Hurricane Helene was 2024) where the HOA only covers a very narrow scope of responsibility and insurance coverage.

    All that said, every investment carries risk, and only you know your tolerance for it. Real estate has made plenty of people wealthy who took a first step just like this one. Excited to see what you decide!

    0Reply
  • Jake YuskaitisBusiness Member
    Lender · New Jersey, USA · Member since 2022 · 254 posts · 67 votes
    2mo

    that is way too tight of cash flow. I would go higher than that to feel comfortable. one big expense and your profit for the year is wiped out.

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  • Tommy Kirkland
    Jacksonville, FL · Member since 2026 · 9 posts · 5 votes
    1mo

    @Sean Thoele curious to know what you decided to do!

    0Reply
  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 685 votes
    1mo

    Cash flowing $100–$150 a month in Florida is definitely doable, Michael. I've been investing in Florida for over 20 years, and with condos, one of the biggest things I've learned is you have to pay close attention to the HOA. I basically look at them as minimalist or opportunistic. A minimalist HOA collects what it needs to maintain the community and keep reasonable reserves. An opportunistic HOA is constantly raising dues, adding assessments, or finding new things to charge owners for, and that can destroy your cash flow. I actually have a condo in the Tampa Bay area in the $80Ks that can cash flow more than $100–$150 a month. The deals are out there—you just have to underwrite the HOA as much as the property.

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